Taipei, Sept. 4 (CNA) The Minimum Wage Deliberation Committee's decision on Wednesday to raise the minimum monthly and hourly wage by 4.08 percent is a reflection of the current consumer price index (CPI), according to academics.
The committee on Wednesday held a meeting, during which members agreed to raise the minimum monthly wage from NT$27,470 to NT$28,590 (US$889.68) and the minimum hourly wage from NT$183 to NT$190.
If approved by the Cabinet, the planned minimum wage increase will take effect on Jan. 1, 2025, according to the Ministry of Labor.
Asked about the proposed wage hike, Lin Hung-yang (林宏陽), a professor in the Department of Social Work at Pingtung University of Science and Technology, said the proposed bump in the minimum wage reflects the current CPI, and it is expected to help maintain the purchasing power of the working class.
However, as the proposed wage increase is set to take effect next year, Lin added that it it is hard to gauge how much help it will provide for consumers, given such variables as the prospect of the U.S. Federal Reserve lowering the interest rate, and global economic outlook and CPI fluctuations next year.
Meanwhile, professor Lee Chien-hung (李健鴻) from the Department of Labor and Human Resources at Chinese Culture University said that the proposed wage increase reflects the projected year-on-year CPI increase and the cost of living of workers earning the minimum wage or just above it.
It also factors in economic growth and the wage increase met the expectations of labor rights groups, Lee added.
However, Hsu Shu-po (許舒博), head of the General Chamber of Commerce of the Republic of China, said the planned wage increase exceeds the 3 percent proposed by private sector representatives during Wednesday's meeting.
That could cause some companies to lay off employees or increase the price of their products, exacerbating inflation, Hsu said.
Hsu called on the government to implement accompanying measures to help small, medium, and micro enterprises which are likely to bear the brunt of the proposed wage increase.
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